Building Block 4: Processes

Division of labor always carries the risk that organizational units isolate themselves and work in silos. The larger and more confusing the company, the more likely it is that areas and departments will even reduce their communication to a minimum or even further. If the left hand does not know what the right hand is doing, and no one has an overview of both hands, coordinated and targeted action is not possible. In this respect, during a restructuring, the company should also be examined for the effectiveness and efficiency of its business processes and adjustments should be made if necessary. The focus is on gaps and redundancies, cost drivers, weaknesses, and risks in the processes. In business processes, the exchange of best practices within a corporate group, with customers and suppliers, or even with companies from other industries can provide valuable insights into one’s own process re-engineering. Administrative processes are usually perceived by a company’s employees as not value-adding per se. Regular review and improvement of their effectiveness and efficiency provide the company with double benefits. In any case, digital transformation and the creation of digital twins facilitate thinking and acting in processes.